Uber has finally selected Dara Khosrowshahi as its new CEO, who was earlier leading the online travel company Expedia, according to media reports. Such a change was recommended recently by former Attorney General Eric Holder and his team, who investigated claims of sexual harassment, sexism and other inappropriate behavior at the company. Seattle-based Expedia and Amazon joined forces to support Washington State's lawsuit against President Trump's controversial "travel ban" Executive Order in March.
The embattled startup suffered losses of $645 million in the quarter ending June 30th. Investors value the company at $68 billion, according to The Wall Street Journal (http://graphics.wsj.com/billion-dollar-club/), the most valuable venture-backed private company tracked by the Journal. A move that made it look insensitive to a burning issue and cost it dearly as almost 200,000 users worldwide deleted the app in an expression of their resentment.
It is unclear what role Mr Kalanick will play in Uber's future.
It needs to be seen if Khosrowshahi can successfully take on the daunting task of mending Uber's image, rebuilding employee morale and create and sustain a profitable business. He will also have to address an intellectual property lawsuit that was brought about by the self-driving vehicle division of Google.
Whitman also addressed the odd circumstances surrounding her candidacy for Uber CEO.
Former CEO Kalanick was also caught berating an Uber driver during a ride and is also a central figure in a lawsuit filed by Alphabet's Waymo. It is basically a macroscopic version of Uber's business plan.
And he spearheaded Expedia's investment a year ago in Wingz, a ride-hailing service that specializes in airport trips.
Khosrowshahi has served as Expedia's CEO for 12 years, overseeing its acquisition of Orbitz and HomeAway and growing revenues from $2.1bn (£1.6bn) in 2005 to $8.7bn in 2016. After Kalanick was pushed out, he scrambled to find allies who would help him make a comeback, the people with knowledge of the matter said. "Neither of them seemed like logical choices", Ramsey said. The firm is also without a chief operating officer, chief financial officer and head of finance. Uber found a new CEO, but it hasn't named a board chair.